Nike’s (NKE) stock is up by 1.54% in pre-market trading Wednesday following a notable insider trade. CEO Elliott Hill purchased roughly $1 million worth of NKE stock, a move investors often view as a strong vote of confidence in the company’s outlook. The purchase comes as Nike works through a turnaround phase, drawing renewed attention from traders.
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Nike’s Latest Insider Trading Activity
According to the filing, Hill bought 16,388 shares of Nike’s Class B common stock on December 29 at an average price of $61.10 per share, for a total investment of roughly $1 million. After the transaction, Hill directly owned 241,587 shares, as shown in the filing.
Hill’s purchase comes after another insider trade was disclosed last week, which showed that Nike board member Tim Cook of Apple (AAPL) bought 50,000 shares at an average price of $58.97, investing roughly $2.94 million.
Nike Insider Buying Surges After Q2 Earnings
The latest insider buying followed Nike’s Q2 earnings report, which beat Wall Street forecasts. However, the company also cautioned that revenue could fall by a low single-digit percentage during the holiday quarter when adjusted for currency.
Nike added that U.S. tariffs are still pushing up costs, creating about $1.5 billion in extra annual expenses and putting pressure on profit margins in the most recent quarter. Hill, who came out of retirement to lead Nike, said the company is in the “middle innings” of its turnaround. North America is starting to stabilize, supported by stronger wholesale partnerships and healthier inventory levels, while China remains a challenge due to softer demand and tougher competition.
Meanwhile, the company said that under its policy, officers and directors can usually trade shares only during a set window after quarterly earnings, unless the trades are made under pre-approved Rule 10b5-1 plans.
What Is the Price Prediction for NKE?
Overall, Wall Street has a Moderate Buy consensus rating on Nike stock based on 20 Buys and eight Holds assigned in the last three months. The average NKE stock price target of $80.0 indicates 30.74% upside potential.
